Legal Question - large online revenues

[CryptO]

How long can a website earn $100K + per month before a company (corporation) has to be formed?

Does a corporation have to be created once the monthly revenue reaches a certain level?

Do the authorities allow an individual or individuals to have large incomes outside of a company structure?

If possible, what is the ceiling on revenue before a company has to be created, if at all?

Thanks

 

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[JasonR]

Are you talking about in the USA or France? Also, are you equating a business/business license with corporation? A corporation is simply a form of legal structure for a business, and you are never REQUIRED to form a corporation. You can earn as much as you like without forming one. However, forming a corporation is advantageous for several reason (as outline in MJ's book and what a good lawyer will tell you).

As far as I know, there is no ceiling on revenue as far as an sole proprietorship, corporation, self-employed, etc. Your question seems odd. What's the reason for asking?

 

[CryptO]

What's the reason for asking?

Its complicated but all I can say is a partner on one of my projects said we will form a corporation if we hit that income. Our agreement will require him to commit assets once the corporation is formed - I can't go any more into it than that. Thanks

BTW - Do the likes count as thanks now?

 

[futhey]

If he's in the US, he's probably thinking about taxes. Basically in the US $100,000 per year to a single owner is where it starts to make sense to convert to a corporation.

 

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[JasonR]

If he's in the US, he's probably thinking about taxes. Basically in the US $100,000 per year to a single owner is where it starts to make sense to convert to a corporation.

It makes sense from day 1 (if you can afford it) for the liability protection.